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SEOUL, South Korea – North Korea said Tuesday it would use nuclear weapons in a "merciless offensive" if provoked — its latest rhetoric apparently aimed at deterring any international punishment for its recent atomic test blast.

The tensions emanating from Pyongyang are beginning to hit nascent business ties with the South: a Seoul-based fur manufacturer became the first South Korean company to announce Monday it was pulling out of an industrial complex in the North's border town of Kaesong.

The complex, which opened in 2004, is a key symbol of rapprochement between the two Koreas but the goodwill is evaporating quickly in the wake of North Korea's nuclear test on May 25 and subsequent missile tests.

Pyongyang raised tensions a notch by reviving its rhetoric in a commentary in the state-run Minju Joson newspaper Tuesday.

"Our nuclear deterrent will be a strong defensive means ... as well as a merciless offensive means to deal a just retaliatory strike to those who touch the country's dignity and sovereignty even a bit," said the commentary, carried by the official Korean Central News Agency.

It appeared to be the first time that North Korea referred to its nuclear arsenal as "offensive" in nature. Pyongyang has long claimed that its nuclear weapons program is a deterrent and only for self-defense against what it calls U.S. attempts to invade it.

The tough talk came as South Korea and the U.S. lead an effort at the U.N. Security Council to have the North punished for its nuclear test with tough sanctions.

Seoul's Yonhap news agency reported Tuesday that South Korea had doubled the number of naval ships around the disputed sea border with the North amid concern the communist neighbor could provoke an armed clash there — the scene of skirmishes in 1999 and 2002.

The Joint Chiefs of Staff declined to confirm the report, but said the North has not shown any unusual military moves.

Relations between the two Koreas have significantly worsened since a pro-U.S, conservative government took office in Seoul last year, advocating a tougher policy on the North. Since then, reconciliation talks have been cut off and all key joint projects except the factory park in Kaesong have been suspended.

Some 40,000 North Koreans are employed at the zone, making everything from electronics and watches to shoes and utensils, providing a major source of revenue for the cash-strapped North. The park combines South Korean technology and management expertise with cheap North Korean labor.

A total of 106 South Korean companies operate in the park. That number will go down by the end of the month when Skinnet, the fur-maker, completes its pullout.

A Skinnet company official said the decision was primarily over "security concerns" for its employees, and also because of a decline in orders from clients concerned over possible disruptions to operations amid the soaring tensions.

The official spoke on condition of anonymity because he was not authorized to speak with reporters.

The industrial park's fate has been in doubt since last month when North Korea threatened to scrap all contracts on running the joint complex and said it would write new rules of its own and the South must accept them or pull out of the zone.

The companies have also been concerned by the detention of a South Korean man working at the complex by North Korean authorities since late March for allegedly denouncing the regime's political system.

The two sides are to hold talks on the fate of the park Thursday.

Intensifying its confrontation with the U.S., North Korea handed down 12-year prison terms to two detained American journalists on Monday.anyone else wanna punch these guys in the face?!

North Korea wont do shit, they may act stupid, but no one is stupid enough to attack with mutually assured destruction on the table. Also, its not like we couldn't just drop some black ops over there and incite a riot, like we have done in south America before.

Long story short, yes they seem cruel and stupid, but they are not stupid enough to actually use nukes. If they are though, we are all fucked and you might as well start spending all your money on drugs.

--------------------"To say that nothing is true, is to realize that the foundations of society are fragile, and that we must be the shepherds of our own civilization. To say that everything is permitted, is to understand that we are the architects of our actions, and that we must live with their consequences, whether glorious or tragic.﻿"

Sometimes you don't have to be stupid to make mistakes. Just a little crazy.

I too doubt N Korea will do anything. Though with Kim's health in a state of decline he might not be so worrisome in starting a war that his successor will have to deal with.

--------------------kickin-two-hundo said:you know what i did in english class? I came to class stoned out of my mind every day, i chugged vodka in the back of class, i put dead fish in the ceiling tiles. i put a gallon of old milk and orange juice in the file cabinet before winter vacation. i brought snakes in a tied up sweater and let them loose during class. i didnt go to school to learn, i went because i had to. i didnt care, and i didn't fucking listen to that stupid bitch. and i still don't fucking care. i tore the pages out of her books and burned them, and threw away all the books in the class, twobooksperday.